The rightwing party and it's politicians, strident acolytes to the wealthy, love to say that the wealthy create the jobs and it is this very excuse being used now by these acolytes to the wealthy to oppose a bill now before congress passed by the Democratic senate that extends tax cuts for those making under 250,000 while letting tax cuts for the rich expire meaning a tax hike on the rich, a tax hike of which a clear majority of Americans support.
The truth is neither the wealthy nor lower taxes on the wealthy create jobs, demand from consumers create jobs. Lower the taxes on the greater mass of Americans upper-middle, middle and lower classes and consumers on a broad scale will have more income to demand products and services. When business sees this they begin hiring in order to provide the goods and services demanded by consumers. This is the reality of the way the economy works.
Time and again the wealthy have been given tax breaks resulting in very little increase in hiring. This has been true under Hoover in the 30's, under Reagan in the 80's and Bush in the 00's. It is time tested and proven. They will sit on their money until they see movement in the consumer base. This is why consumer spending and sentiment move the markets more than the jobs report. If you know anything about the economics of the market and are not yet brainwashed into the extreme rightwing "market is god" mentality then you know this is still true. I hope you know it is still true.
What is also important is perception by the public. If the consumer sees a budget bill passed that responsibly raises revenue and cuts spending, and a large majority of consumers favor revenues and cuts, then they will begin to feel confident in stepping into and spending money in an economy with a fiscally responsible plan.
Consumer perception and consumer confidence is the game.
Wall street has fully demonstrated that their first and foremost concern is enriching themselves through favorable taxation or favorable legislation but businesses also fully recognize when all these things come together and when they do, meaning they see a budget plan voted on by congress that will be the game plan for the economy, they will want to be in the game even if they do not like all the rules. With a budget plan and a consumer base spurred by confidence in the budget plan and tax cuts, business will begin hiring. Business wants to play but they won't until the consumer plays.
The Tea Party Republicans also understand these dynamics but they also full well know that if they were to support the budget plan that Obama and most Americans want the economy would begin to get better. They knew this last summer when they had a chance to vote for a budget bill favored by a clear majority of Americans but they rejected it because they were willing to allow the nation's economy to lanquish under Obama so that they would have a better chance of getting themselves elected being in position to criticize a languishing economy under Obama. The Tea Party Republicans understand the economy but lie about the way it works in order to serve themselves and Wall Street. They serve themselves because of course they know Wall Street will return the favor by filling their election coffers with billions of dollars. The Tea Party Republicans love the rich and they will lie about the economy and trash the economy in order to get into power so they can direct the fruits of the economy into the hands of the rich in order to be rewarded by the rich and the sorry evil circle goes round and round until..... You, the riff-raff, the rabble, the "you people", the "We The People" the consumer stop it.
Stop it by supporting politicians that will pass spending cuts on a broad scale along with tax increases on the rich bringing a real healing to the economy and delivering us from the ideological intransigence that is at the core of gridlock.
The truth is neither the wealthy nor lower taxes on the wealthy create jobs, demand from consumers create jobs. Lower the taxes on the greater mass of Americans upper-middle, middle and lower classes and consumers on a broad scale will have more income to demand products and services. When business sees this they begin hiring in order to provide the goods and services demanded by consumers. This is the reality of the way the economy works.
Time and again the wealthy have been given tax breaks resulting in very little increase in hiring. This has been true under Hoover in the 30's, under Reagan in the 80's and Bush in the 00's. It is time tested and proven. They will sit on their money until they see movement in the consumer base. This is why consumer spending and sentiment move the markets more than the jobs report. If you know anything about the economics of the market and are not yet brainwashed into the extreme rightwing "market is god" mentality then you know this is still true. I hope you know it is still true.
What is also important is perception by the public. If the consumer sees a budget bill passed that responsibly raises revenue and cuts spending, and a large majority of consumers favor revenues and cuts, then they will begin to feel confident in stepping into and spending money in an economy with a fiscally responsible plan.
Consumer perception and consumer confidence is the game.
Wall street has fully demonstrated that their first and foremost concern is enriching themselves through favorable taxation or favorable legislation but businesses also fully recognize when all these things come together and when they do, meaning they see a budget plan voted on by congress that will be the game plan for the economy, they will want to be in the game even if they do not like all the rules. With a budget plan and a consumer base spurred by confidence in the budget plan and tax cuts, business will begin hiring. Business wants to play but they won't until the consumer plays.
The Tea Party Republicans also understand these dynamics but they also full well know that if they were to support the budget plan that Obama and most Americans want the economy would begin to get better. They knew this last summer when they had a chance to vote for a budget bill favored by a clear majority of Americans but they rejected it because they were willing to allow the nation's economy to lanquish under Obama so that they would have a better chance of getting themselves elected being in position to criticize a languishing economy under Obama. The Tea Party Republicans understand the economy but lie about the way it works in order to serve themselves and Wall Street. They serve themselves because of course they know Wall Street will return the favor by filling their election coffers with billions of dollars. The Tea Party Republicans love the rich and they will lie about the economy and trash the economy in order to get into power so they can direct the fruits of the economy into the hands of the rich in order to be rewarded by the rich and the sorry evil circle goes round and round until..... You, the riff-raff, the rabble, the "you people", the "We The People" the consumer stop it.
Stop it by supporting politicians that will pass spending cuts on a broad scale along with tax increases on the rich bringing a real healing to the economy and delivering us from the ideological intransigence that is at the core of gridlock.
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